In a report released today, Andrew Percoco from Morgan Stanley maintained a Sell rating on Plug Power (PLUG – Research Report), with a price target of $1.60.
Andrew Percoco has given his Sell rating due to a combination of factors impacting Plug Power’s financial performance and strategic outlook. The company’s fourth-quarter results fell significantly short of expectations, with revenue and gross margins missing consensus estimates. A substantial non-cash impairment charge further strained the financials, highlighting underlying challenges.
Additionally, while Plug Power has initiated Project “Quantum Leap” to cut costs and focus on core businesses, uncertainties remain. The termination of a significant partnership with Fortescue underscores the difficulties in the green hydrogen market. Furthermore, political uncertainties have led to delays in capital investment for a key production facility, raising concerns about future growth prospects. These elements collectively contribute to a cautious stance on Plug Power’s near-term outlook.
According to TipRanks, Percoco is a 3-star analyst with an average return of 5.8% and a 45.71% success rate. Percoco covers the Technology sector, focusing on stocks such as Shoals Technologies Group, Enphase Energy, and First Solar.
In another report released yesterday, BMO Capital also maintained a Sell rating on the stock with a $1.40 price target.